Financial asset
Encyclopedia
A financial asset is an intangible asset
that derives value because of a contractual claim. Examples include bank deposits, bonds
, and stocks
. Financial assets are usually more liquid than tangible assets
, such as land or real estate, and are traded on financial markets.
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
that derives value because of a contractual claim. Examples include bank deposits, bonds
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
, and stocks
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
. Financial assets are usually more liquid than tangible assets
Tangible property
Tangible property in law is, literally, anything which can be touched, and includes both real property and personal property , and stands in distinction to intangible property....
, such as land or real estate, and are traded on financial markets.